An emergency fund, like its name implies, is meant to help you get through emergencies like a fire, flood or other situation where you may need money fast. It is meant to get you out of a financial crisis so that you do not need to rely on credit.

There should be a balance between paying off debt and saving for an emergency fund. If there are no savings, then you risk having to use credit to get through the crisis. This can cause an even larger financial burden.

“The main drawback to using a line of credit is the inevitable increase to your debt load,” Mastromonaco said.

It is important to have a clear understanding of what a crisis is for your family. Some things, like car or appliance repairs aren’t necessarily considered to be an emergency. These things should be considered as irregular expenses.

Examples of emergencies can include having to fly home for a funeral, having to take unexpected time off of work, or losing your job.

“Alberta’s unemployment rate continues to approach eight per cent, making job loss the single most common emergency Albertans may need extra funds for,” Mastromonaco said.